Basic method for heavy vehicles

You can use the basic method for heavy vehicles to calculate fuel tax credits for diesel used in heavy vehicles if you claim less than $10,000 each year.

The method makes it easier to work out on and off public road use. The rate for travel off public roads is higher than on public roads. This means you will get more fuel tax credits if you calculate off public road use correctly.

Examples of travel off public roads includes heavy vehicle use in warehouses, depots or car parks, where you may be idling, loading or unloading your vehicle.

You can use this method for diesel acquired on or after 1 October 2020. You cannot use another method for calculating fuel used for travel on and off public roads if you use this method.

Basic method for heavy vehicles

Find out more:

• PCG 2021/2 Fuel tax credits – basic method for heavy vehicles
• Help your clients get more fuel tax creditsExternal Link (webinar) shows practical examples of how to use the basic method for heavy vehicles.

Step 1: Calculate litres of diesel used on public roads

Calculate your litres of diesel used on public roads using this formula:

• Kilometres travelled on public roads × diesel consumption rate

Kilometres travelled on public roads

When working out your kilometres travelled on public roads, you can use either the:

• derived number of kilometres travelled
• actual number of kilometres travelled.

Work out the derived number of kilometres travelled on public roads by multiplying your total kilometres travelled by 98.4%. If you use derived number of kilometres, you need to keep records that show your total kilometres travelled, such as logbooks or odometer readings.

If you use your actual number of kilometres travelled on public roads, you need to keep records that show the distance you've travelled from your starting destination to your end destination.

See also:

• Records you need to keep

Diesel consumption rates

Use the following tables to find your diesel consumption rate.

Table 1 – Diesel consumption rates for rigid trucks

Vehicle classification by gross weight	Accepted litres per km
>4.5 tonnes and ≤ 12 tonnes	0.18
˃12 tonnes and ≤ 16.5 tonnes	0.23
˃16.5 tonnes and ≤ 24 tonnes	0.28
˃24 tonnes and ≤ 30 tonnes	0.32
˃30 tonnes	0.35

You can find the diesel consumption rates for articulated combinations in the Practical Compliance Guideline.

When working out step 1, you may use your vehicle’s engine diagnostic reports of ‘driving fuel’ economy, instead of our diesel consumption rates.

See also:

• PCG 2021/2 Fuel tax credits – basic method for heavy vehicles
• On public roads

Step 2: Calculate litres of diesel used off public roads

Calculate your litres of diesel used off public roads using this formula:

Total litres of eligible diesel – litres of diesel used on public roads (worked out at step 1).

See also:

• Off public roads

Step 3: Calculate your fuel tax credits for the tax period

Calculate your fuel tax credit claim using this formula:

Litres of diesel used on public roads (from step 1) × on public road rate

+

Litres of diesel used off public roads (from step 2) × all other business uses rate

You can find the on public road and all other business uses rates at Rates – business. Fuel tax credit rates change regularly, so it's important you check you are using the right rate.

See also:

• Fuel tax credit calculator

Example of basic method for heavy vehicles

Use the basic method for heavy vehicles to calculate your fuel tax credits if you claim less than $10,000 each year.